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Hard Questions and Sustainable Solutions
By Chris Nelder | Friday, August 21st, 2009
The more I probe the hardest questions about the future of energy and
our best shot at sustainability, the more I am convinced that the real
questions are not about technology, but about human nature.
We have all the technology we need to make homes that produce their
own energy. We know how to build high-efficiency rail and sailing
ships. We know how to grow food organically and sustainably. We have
the science to create economic systems that internalize all effects
and operate in a beneficial manner. We've had the quantitative
knowledge for decades that we would eventually go into resource and
environmental overshoot.
We certainly have the technology to build an all-electric
infrastructure entirely powered by renewables. We will crack the
storage problem and all the other technical problems. I have no doubt
that the technology also exists to build an all-nuclear solution, or
even an all-hydrogen solution.
We have the technology to recycle all our water and reclaim all our
waste. We could even control our population. . . if we had the will.
We also know what real sustainability means. I don't think I have ever
seen it better put than by my friend Paul Hawken in his book, The
Ecology of Commerce:
Sustainability is an economic state where the demands placed upon the
environment by people and commerce can be met without reducing the
capacity of the environment to provide for future generations. It can
also be expressed in the simple terms of an economic golden rule for
the restorative economy: Leave the world better than you found it,
take no more than you need, try not to harm life or the environment,
make amends if you do.
The real problem is we don't want to act that way. Virtually no
business in existence meets that standard.
Technology and knowledge simply aren't the issue.
We don't want to think about having to put CO2 back in the ground
after we burn fuels. We don't want to worry about the waste from our
consumption. We don't like to hear about limits to anything we want to
do. We don't want to rearrange our stuff, our lifestyles, so that they
are truly sustainable. And we certainly don't like anybody telling us
we can't have more kids.
In fact we don't even like to think about it. . . so when the subject
comes up, we dismiss it with a flip comment like, "So I suppose you
want us all to be living in caves and working by candlelight?"
The upwelling of emotions that this topic inspires — especially fear —
usually makes a neutral and scientific discussion out of the
question.
And from fear, most people leap to faith: faith in the perfect wisdom
of free markets, faith in technology, faith in human ingenuity. No
rational discussion needed.
Nor is this aspect of human nature a news flash. ‘Twas ever so. At the
suggestion of a smart hedge fund manager buddy, I recently put
Thucydides' history of the Peloponnesian War in my reading queue for
clues on how humanity actually performs when presented with serious
fiscal and resource challenges.
I know some very smart people who are fully armed with the data on
resource depletion and peak oil, and who still choose to believe in a
cornucopian future where humanity acts wisely, humanely, justly, and
in concert with a view toward long-term planning, solving all of our
problems without any serious hardship.
This time, they contend, it will be different. After all, aren't we
entering the Age of Aquarius, when humanity finally embraces unity and
understanding?
Well, forgive me for being skeptical. The degree of cooperation they
envisage has no precedent whatsoever in human history, and there are
thousands of examples to the contrary.
In fact I was a bit shocked today when I looked back on my first opus
on sustainability ("Envisioning a Sustainable Future"), published in
my online magazine Better World 13 years ago, and realized that all of
the problems are the same now as they were then, only worse:
population, energy, water, extinction, environmental destruction,
flawed economic theory, global warming, and humanity's problem with
long-term planning.
It gave me pause. A long pause. Are all my efforts, and those of my
fellow agitators for sustainability, simply battling human nature? And
if so, what good is it?
Tantalizing Technologies and Hard Questions
At this point, 13 years later, the questions are even less tangible:
How will people respond to the coming changes? Can the political
support for truly sustainable solutions be marshaled? Will the economy
hold out long enough to accomplish the transformation? And how will
declining energy supply impede our efforts?
Certainly, in theory, we could replace 220 million light ICE cars and
trucks with electric models, and heavy transport trucks with a
combination of biofuels, natural gas, and hydraulic storage
technologies. The technology exists. But will we have the investment
and primary energy supply to build them, if we simply let the market
and politics guide us?
Consider "Cash for Clunkers." Using data and estimates from the New
York Times, I calculate that the program pays off in nine years at $70
oil, and in five years at $120 oil. In terms of effective investment
in the future, that's really not too bad. (The photovoltaic systems I
designed and sold in my previous career typically paid off in more
like 20 years, before incentives.)
Even so, Cash for Clunkers was reviled for swapping out over a quarter-
million cars for more efficient ones at a mere cost of $1 billion.
What are the chances we'll have the political support to do 220
million vehicles that way? Especially if oil gets more expensive and
we start having shortages and more heavy industry failures when oil
goes into decline a mere two years from now?
Sure, we can run airplanes on "renewable" synthetic diesel fuel made
from green waste such as yard clippings, and early investors in such
technologies will make a bundle. Rentech's (AMEX: RTK) recent
announcement that it had signed a deal to provide as much as 1.5
million gallons per year of the stuff to eight major airlines sent the
stock soaring over 360% in two weeks.
But 1.5 million gallons per year is nothing, and thanks to the
transport and handling cost of green waste, it doesn't scale. If it
requires transporting massive amounts of the feedstock with diesel-
powered trucks, it isn't sustainable either. Need we even discuss
recycled fryer oil?
Similar problems bedevil the alcohol fuels and biofuels, including
algae. There are many interesting approaches to both in the lab, but
for a long list of reasons (including water availability and the net
energy of the processes), they don't scale well. I don't see any of
the biofuels making more than a 50% gain from their current paltry
levels for a good many years yet — and then we'll be having so many
other problems with energy, water, food, and the economy, that the
long-term outlook gets very murky.
Sure, we can try to turn to Canada's tar sands and deepwater heavy oil
as the good cheap stuff runs out, but a cursory look at their net
energy tells us that doing so is an attempt to play the oil game into
overtime, not an attempt to do something sustainable. Thinking
otherwise is simply denial.
A straightforward analysis of the data suggest that once we take peak
oil, peak gas, and peak coal into account, there may not be enough
time left to use cheap fossil fuels for the decades it would take to
accomplish a transformation to true sustainability, let alone the
human will to do it. And the experience of the last year gives me no
confidence at all that the world can smoothly transit this inflection
point in economics.
Yet I want to foster inspiration, not desperation. For most people,
hope is as essential to survival as food, water, and air. And there is
hope — not for business as usual, but for a much better kind of
business. Not for endless growth, but for a more sustainable future.
But I am not one for false hope. I have endeavored to bring a dose of
realism to this column for three years now, and I will soldier on. The
opportunities to create sustainable solutions and profit from them are
probably greater now than they have ever been. It's our task to find
them, promote them, invest in them. . . and beyond that, hope for the
best.
Until next time,
Chris
Energy and Capital